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Income Tax Act 2007

General collection rules - Intermediaries - Employers’ responsibilities

RP 7: General responsibilities of employers

You could also call this:

“What employers must do when using a PAYE intermediary for payroll”

If you’re an employer and you decide to use a PAYE intermediary to handle your PAYE obligations for an employee during a pay period, there are some important things you need to know.

When you use a PAYE intermediary, you’re no longer responsible for the PAYE rules for that employee and pay period. But remember, you still have to pay your employee their salary or wages for that time.

If the PAYE intermediary also takes care of your ESCT rules obligations, you won’t be responsible for those either for that employee and pay period. However, you still need to pay any employer’s superannuation cash contribution you’ve made for your employee.

To use a PAYE intermediary, you need to meet certain requirements. You can find out more about these requirements in sections RP 8 to RP 11.

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View the original legislation for this page at https://legislation.govt.nz/act/public/1986/0120/latest/link.aspx?id=DLM1520514.

Topics:
Money and consumer rights > Taxes
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RP 6: Operation of PAYE intermediaries’ trust accounts, or

“How PAYE intermediaries manage trust accounts for employee pay and tax”

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RP 8: Information for PAYE intermediaries, or

“You must provide necessary information to your PAYE intermediary”

Part R General collection rules
Intermediaries: Employers’ responsibilities

RP 7General responsibilities of employers

  1. This section applies when an employer who meets the requirements of sections RP 8 to RP 11 arranges to transfer their PAYE obligations in relation to an employee and a pay period to a PAYE intermediary.

  2. The employer is not liable under the PAYE rules in relation to the employee and the pay period. However, the employer remains liable for the payment to the employee of the salary or wages for the pay period.

  3. If the PAYE intermediary assumes the employer’s obligations under the ESCT rules, the employer is not liable under the ESCT rules in relation to the employee and the pay period. However, the employer remains liable for the payment to the employee of the employer's superannuation cash contribution made on the employee's behalf.

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Notes
  • Section RP 7(3): amended (with effect on 1 April 2008), on , by section 545(1) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section RP 7 list of defined terms employer's superannuation cash contribution: inserted (with effect on 1 April 2008), on , by section 545(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).
  • Section RP 7 list of defined terms employer's superannuation contribution: repealed (with effect on 1 April 2008), on , by section 545(2) of the Taxation (International Taxation, Life Insurance, and Remedial Matters) Act 2009 (2009 No 34).